The world number 24 Indian, who had beaten the likes of world number 13 Wing ki Wong in Guangzhou, before defeating world no 5 Tien Minh Nguyen twice and world number 9 Jan o Jorgensen in the IBL, could not recreate the magic at the Olympic Sports Center Xincheng Gymnasium here.
The Mumbai-based shuttler, who had played for champions Hyderabad HotshotsL, lost 14-21 21-23 to world number 30 Chen in a 36-minute men's singles here.
In the second game, Jayaram recovered from 0-4 down to move to a 10-7 lead at one stage. However, Chen was not ready to give up so easily and after a tough fight, it was the Chinese who had the last laugh.
Jayaram will next play in the Japan Open.